Freeport-McMoRan 2008 Annual Report Download - page 8

6 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
resources and growth opportunities for anticipated
improved market conditions in the longer term.
Our long-lived reserves, geographically diverse
operations and flexible operating structure enable us
to adapt quickly to market conditions. The metals we
produce are important to the world’s economies, and
we are positioned to benefit as conditions improve. The
outlook for copper over the long term is particularly
positive, underpinned by scarce supplies, and the role
of copper in the infrastructure of China and the rest of
the developing world and in the economies of developed
nations. In the near term, we will continue to focus
on reducing costs and maintaining our “Core Assets”
to position us to benefit when conditions improve.
Our estimated total reserves at December 31, 2008,
were 102.0 billion pounds of copper, 40.0 million ounces
of gold and 2.48 billion pounds of molybdenum. Net
additions to 2008 reserves included 12.8 billion pounds
of copper and 0.51 billion pounds of molybdenum —
more than three times the copper and seven times
the molybdenum we produced during 2008.
Our “Core Assets” are located in North and South America,
Indonesia and Africa and include our flagship property,
the Grasberg minerals district in Papua, Indonesia. We
are mining in a high-grade section of the Grasberg mine,
which will enable us to increase our gold sales in 2009
to over 2 million ounces at a time of rising gold prices.
Another “Core Asset” is the Tenke Fungurume project
in the Democratic Republic of Congo in Africa. Tenke
Fungurume is widely viewed as one of the world’s
most exciting minerals projects with the potential
of becoming a world-class copper and cobalt mine.
Construction activities progressed throughout 2008,
and production for the initial project is targeted to
reach designed rates during the second half of 2009.
Because of the high-grade ore, this mine is expected to
have an attractive cost structure. Annual production in
the initial years is expected to approximate 250 million
pounds of copper and 18 million pounds of cobalt.
Our Board of Directors, which has a long-standing
tradition of building shareholder value by pursuing
development of projects with high rates of return and
returning value to shareholders through common stock
dividends and common stock purchases, will continually
review our financial policy as market conditions change.
While the volatile markets required decisive operational
and financial actions, our dedication to upholding
our environmental and social commitments remains
unchanged. Freeport-McMoRan Copper & Gold Inc. has
made a strong commitment to environmental protection
and communities through its policies, as well as a promise
to seek continuous improvement in these areas. As a
founding member of the International Council on Mining
and Metals (ICMM), we endorse the ICMM Sustainable
Development Framework and 10 Sustainable Development
Principles. A consistent approach to the sustainable
development challenges of the 21st century is a competitive
advantage in creating long-term value for investors.
We wish to express our deepest appreciation to our
employees for their dedication and to our Board of
Directors for their support and advice during these
difficult times. They are also a key part of the “Core
Assets” of our enterprise. Together, we are a strong team
working to ensure the future success of our company.
Respectfully yours,
March 16, 2009
James R. Moffett
Chairman
of the Board
Richard C. Adkerson
President and
Chief Executive Officer